DR Horton Inc (DHI)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 333.37 | 312.76 | 344.03 | 302.27 | 290.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 333.37 | 312.76 | 344.03 | 302.27 | 290.55 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 333.37 + — – —
= 333.37
DR Horton Inc's cash conversion cycle has shown some fluctuations over the past five years. In the most recent fiscal year ending September 30, 2024, the cash conversion cycle increased to 333.37 days from 312.76 days in the previous year. This indicates that it took DR Horton Inc longer to convert its investments in inventory and receivables into cash during the most recent year.
Comparing this to the data from the preceding years, we see that the cash conversion cycle was lower in the fiscal years ending September 30, 2021 and 2020 at 302.27 days and 290.55 days, respectively. This suggests that the company was more efficient in managing its cash conversion process during those years compared to the most recent year.
On the other hand, the cash conversion cycle was higher in the fiscal year ending September 30, 2022, at 344.03 days, which indicates a less efficient cash conversion process during that period.
Overall, DR Horton Inc's cash conversion cycle has exhibited variability over the past five years, with fluctuations in efficiency in converting investments in inventory and receivables into cash. Further analysis and examination of the underlying factors influencing the cash conversion cycle may provide insights into the company's working capital management practices.
Peer comparison
Sep 30, 2024